HLS 20RS-523 ENGROSSED
2020 Regular Session
HOUSE BILL NO. 131
BY REPRESENTATIVE FIRMENT
INSURANCE CLAIMS: Provides relative to covered claims of the Louisiana Insurance
Guaranty Association
1 AN ACT
2To amend and reenact R.S. 22:2055(6)(b)(iii) and to enact R.S. 22:2055(6)(b)(xii), relative
3 to claims covered by the Louisiana Insurance Guaranty Association; to exclude
4 claims made by Medicare or Medicare Advantage plans; to exclude claims made by
5 agencies and programs of the federal and state government; to provide for an
6 effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 22:2055(6)(b)(iii) is hereby amended and reenacted and R.S.
922:2055(6)(b)(xii) is hereby enacted to read as follows:
10 ยง2055. Definitions
11 As used in this Part:
12 * * *
13 (6) "Covered claim" means the following:
14 * * *
15 (b) "Covered claim" shall not include:
16 * * *
17 (iii) Any amount due any reinsurer, insurer, insurance pool or underwriting
18 association, health maintenance organization or plan, preferred provider organization
19 or plan, hospital plan corporation, professional health service corporation, employee
20 retirement fund including but not limited to plans subject to the Employee
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-523 ENGROSSED
HB NO. 131
1 Retirement Income Security Act of 1974, Medicare or Medicare Advantage,
2 Medicaid, or the self-insured portion due any self-insurer as subrogation recoveries,
3 reinsurance recoveries, contribution, indemnification, or otherwise. In addition, any
4 person insured under a policy issued by an insolvent insurer shall likewise not be
5 liable for any subrogation claim or any contractual indemnity claim asserted by any
6 reinsurer, insurer, insurance pool, underwriting association, health maintenance
7 organization or plan, hospital plan corporation, professional health service
8 corporation, preferred provider organization or plan, employee retirement fund
9 including but not limited to plans subject to the Employee Retirement Income
10 Security Act of 1974, Medicare or Medicare Advantage, Medicaid, self-insurer, or
11 any other person with an interest in the claim, other than to the extent the claim
12 exceeds the association's obligation limitations.
13 * * *
14 (xii) Any claim by any agency or program of the federal government or of
15 any state or political subdivision thereof.
16 * * *
17 Section 2. This Act shall become effective on July 1, 2020.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 131 Engrossed 2020 Regular Session Firment
Abstract: Excludes claims by Medicare, Medicare Advantage plans, and federal and state
governments from coverage by the Louisiana Insurance Guaranty Association.
Present law establishes the La. Insurance Guaranty Association (LIGA) as a private,
nonprofit entity to pay for qualified property and casualty insurance claims in the event an
insurer becomes insolvent.
Proposed law retains present law.
Present law provides for which types of claims are covered by LIGA.
Proposed law retains present law.
Present law provides for which types of claims are excluded from coverage by LIGA.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-523 ENGROSSED
HB NO. 131
Proposed law retains present law and adds an exclusion for claims by all of the following:
(1)Medicare.
(2)Medicare Advantage plans.
(3)Any agency or program of the federal government or of any state or political
subdivision thereof.
Effective July 1, 2020.
(Amends R.S. 22:2055(6)(b)(iii); Adds R.S. 22:2055(6)(b)(xii))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.